The euro has withstood a lot of criticism – and is still a debt burden

Brussels, Berlin Skepticism prevailed when the euro was introduced as cash at the turn of the year 2002. Germany struggled with the “Teuro” because the prices were at least felt higher than in the D-Mark era. US economists predicted the early failure of the common currency. Investors also looked at the euro with suspicion.

20 years later, even the critics have to admit: The common currency did not go under. It has survived the financial crisis, the euro crisis – and in all likelihood it will also survive the economic slump as a result of the pandemic.

But the rescue policy and also the reform sluggishness of many member states during the numerous crises has driven the national debt to alarming heights since the outbreak of the financial crisis: The total debt of the euro member states is 13 trillion euros.

20 years ago it was five trillion euros. Since the outbreak of the financial crisis alone, debt has risen from 66 percent of economic output to one hundred percent today.